Since 1 July 2025, the Community Services Industry in New South Wales has been subject to the requirements of the Portable Long Service Leave (PLSL) Scheme. If you manage or own a business/organisation in this sector, it’s crucial to understand how these changes impact your obligations and your team. Here’s a straightforward summary of what you need to know.
What Is the Portable Long Service Leave Scheme?
Traditionally, long service leave (LSL) in NSW has rewarded employees for extended service with a single employer. However, the community services sector is unique; many workers move between employers even though they remain within the industry. The PLSL Scheme recognises this uniqueness, and the important work of those in the Community Services sector, by allowing workers to accrue long service leave entitlements based on their service to the industry as a whole, rather than with a single employer.
Key Point: Under the new scheme, eligible employees can access up to six weeks of paid long service leave after seven years of service in the community services industry, even if that time is served across multiple employers.
The scheme is supported by a levy to be paid quarterly by eligible employers and any self-employed contractors who opt-in to the scheme.
Who Is Covered by the Scheme?
The PLSL Scheme covers a broad range of roles and organisations within the community services sector. This includes though is not limited to:
- Community development and care services (though NOT residential aged care or assisted living facilities)
- Disability supports and services
- Employment services support
- Youth and family support services
- Homelessness support services
- Aboriginal and Torres Strait Islander community services
Click HERE for a more complete list of the work covered by the scheme.
Full-time, part-time, and casual workers are eligible, provided their roles fall within the defined scope of the scheme. If you’re unsure whether your business/organisation or workers are covered, consult the official scheme coverage guidelines.
How Does It Work?
Accrual:
Eligible workers started accruing portable long service leave under the scheme from 1 July 2025, or their first day of eligible employment after this date.
Note that employers remain responsible under the Long Service Leave Act 1955 for any service performed by their workers prior to 1 July 2025. That is, employers are required to continue to manage and honour existing entitlements accrued under the 1955 Act, as these entitlements do not transfer into the new scheme. Employers need to maintain compliance with both Acts.
Leave Entitlement:
- Under the scheme, after 7 years of recognised service, a worker is entitled to up to 6 weeks of paid long service leave. Note that workers who are in the scheme during the first 6 months may also be entitled to a Foundation Workers Bonus, which effectively credits their record with 365 days of service, meaning that they may be eligible for long service leave sooner.
- For each additional year of service, leave continues to accrue at a set rate.
Portability:
If a worker changes employers yet remains in the industry (as defined), their service record and accrued leave move with them.
What Does This Mean for Employers?
Registration:
Eligible employers must register with the Long Service Corporation within 1 month of commencement of the scheme or within 1 month of becoming an eligible employer. Other obligations include submitting quarterly service returns, paying levies when due, and maintaining designated records. There are penalties for non-compliance.
Levy Payments:
Employers are required to pay a quarterly levy currently calculated at 1.7% of the gross ordinary wages paid to eligible workers. This levy funds the scheme and ensures payments are available when workers take leave. The specific levy rate is set by the Long Service Corporation and may be reviewed periodically. The first levy payment (covering the first 3 quarterly returns) will be due from April 2026.
Record Keeping:
Eligible employers need to maintain accurate records of employee details, including service periods and wages, and report these each quarter. This is essential for ensuring workers receive their correct entitlements.
No Double Dipping:
If an employee takes portable long service leave, this is offset against any long service leave entitlements under other NSW laws, ensuring there’s no duplication of benefits.
What Should You Do Next?
- Check if you and your staff are covered: Review the scheme’s coverage guidelines.
- Register your business: Visit the Long Service Corporation’s website to review detailed instructions and register.
- Update your payroll and record-keeping systems to track levy payments and employee service.
- Communicate with your team: Let your staff know about the new entitlements and how the scheme works.
Final Thoughts
The new PLSL Scheme is a significant shift for the community services sector, designed to recognise the dedication of workers who support our communities, regardless of any shifts they might make between employers.
For employers, while it means some additional administrative steps and levy payments, it’s a strategy that should support the attraction and retention of a capable, committed workforce.
For more detailed guidance, visit the official NSW Government website, and/or reach out to us for more information or assistance.
This article provides general information which we believe to be correct at the time of posting. It is a summary and relates to employers/workers in NSW only. Information provided must not be considered complete, professional or legal advice. If you’re an employer and need support that takes into account your particular circumstances, please contact us directly.
